Class 12 Economics MCQ Chapter 8 Balance of Payments

Class 12 Economics MCQ Chapter 8 Balance of Payments Question Answer English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Economics MCQ Chapter 8 Balance of Payments and select need one. AHSEC Class 12 Economics Objective Type Solutions As Per AHSEC New Book Syllabus Download PDF. AHSEC Economics MCQ Class 12.

Class 12 Economics MCQ Chapter 8 Balance of Payments

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Economics Multiple Choice Solutions are part of All Subject Solutions. Here we have given AHSEC Class 12 Economics MCQ in English for All Chapters, You can practice these here.

Balance of Payments

Chapter: 8

PART – A: INTRODUCTORY MICROECONOMICS

1. Balance of Payments (BoP) is a record of transactions for which period?

(i) A month.

(ii) A financial year.

(iii) A day.

(iv) A decade.

Ans: (ii) A financial year.

2. BoP records transactions between residents and whom?

(i) Central bank only.

(ii) Domestic firms only.

(iii) Residents of foreign countries.

(iv) Embassies only.

Ans: (iii) Residents of foreign countries.

3. BoP includes flows of:

(i) Goods only.

(ii) Services only.

(iii) Goods, services and assets.

(iv) Assets only.

Ans: (iii) Goods, services and assets.

4. BoP is a:

(i) Stock concept.

(ii) Flow concept.

(iii) Nominal concept.

(iv) Real concept.

Ans: (ii) Flow concept.

5. Visible items refer to trade in:

(i) Services.

(ii) Goods.

(iii) Transfers.

(iv) Gold only.

Ans: (ii) Goods.

6. Invisibles include:

(i) Shipping, banking, insurance, tourism.

(ii) Only merchandise.

(iii) Only gold imports.

(iv) Only government grants.

Ans: (i) Shipping, banking, insurance, tourism.

7. Factor income consists of:

(i) Gifts and grants.

(ii) Interest, dividend, profit, rent.

(iii) Customs duties.

(iv) Subsidies.

Ans: (ii) Interest, dividend, profit, rent.

8. Unilateral transfers are:

(i) Two-way exchanges.

(ii) One-sided receipts or payments.

(iii) Only private remittances.

(iv) Only official grants.

Ans: (ii) One-sided receipts or payments.

9. The two main accounts of BoP are:

(i) Capital and fiscal.

(ii) Current and capital.

(iii) Revenue and capital

(iv) Trade and services.

Ans: (ii) Current and capital.

10. Balance of Trade (BoT) measures:

(i) Goods plus services balance.

(ii) Only services balance.

(iii) Exports minus imports of goods.

(iv) Capital inflow minus outflow.

Ans: (iii) Exports minus imports of goods.

11. The invisible account is also called the:

(i) Merchandise account.

(ii) Service account.

(iii) Reserve account.

(iv) Error account.

Ans: (ii) Service account.

12. Current account is in surplus when:

(i) Imports plus payments exceed exports plus receipts.

(ii) Exports plus receipts exceed imports plus payments.

(iii) Capital inflows exceed capital outflows.

(iv) Reserves increase.

Ans: (ii) Exports plus receipts exceed imports plus payments.

13. Direct investment typically implies:

(i) No control over assets.

(ii) Control over assets abroad.

(iii) Only loan transactions.

(iv) Only purchase of bonds.

Ans: (ii) Control over assets abroad.

14. Portfolio investment means:

(i) Establishing a subsidiary abroad.

(ii) Buying securities without managerial control.

(iii) Purchasing machines abroad.

(iv) Taking concessional aid.

Ans: (ii) Buying securities without managerial control.

15. Commercial borrowing refers to loans at:

(i) Zero interest.

(ii) Market rates of interest.

(iii) Negative interest.

(iv) Administered customs rates.

Ans: (ii) Market rates of interest.